Changes to Stamp Duty Land Tax (SDLT) are coming into effect from 1st April 2025. It’s important to be aware of these updates as they will impact how much SDLT you’ll pay when purchasing or transferring equity in land or property. Here’s a quick overview of the new thresholds and how they could apply to you.
New Stamp Duty Land Tax thresholds
From 1st April 2025, SDLT will be payable on properties exceeding the following thresholds:
£125,000 for residential properties
£300,000 for first-time buyers purchasing residential property worth £500,000 or less
£150,000 for non-residential land and properties
What affects the amount of SDLT you pay?
The amount of SDLT you pay will depend on a few key factors:
- Whether the land or property will be residential or non-residential/mixed-use.
- Whether you qualify for relief or exemption.
If you’re buying a residential property, there are a few scenarios that could impact the rate:
- First-time buyers benefit from a higher threshold of £300,000 on properties worth up to £500,000.
- The SDLT rate will be different if you’re buying an additional property, such as a second home.
- Non-UK residents may also be subject to different rates.
Make sure you’re prepared with the HMRC Stamp Duty Land Tax calculator
To ensure you’re clear on how much SDLT you’ll need to pay, we recommend using the HMRC Stamp Duty Land Tax calculator. It’s a great tool that helps you plan your finances and get a clearer picture of your potential costs. For example, an increase in SDLT could affect your mortgage application, so it’s helpful to know in advance if you’ll need to adjust your mortgage plans.
Staying on track with your transaction
While we’re committed to making sure your transaction progresses smoothly, there may be factors beyond our control that could cause delays. These include things like third-party involvement, such as lenders, surveyors, or other solicitors, or unforeseen complexities in the conveyancing process.
We’ll do everything we can to keep you updated on the progress of your transaction and resolve any issues quickly. However, as the new SDLT thresholds will come into effect on 1st April 2025, we encourage you to be mindful of the deadline. While we can’t guarantee that your transaction will complete before then, we’ll be by your side every step of the way to support you in meeting your goals.
What should you do?
Here’s what you can do to ensure you’re fully prepared:
- Take note of the new SDLT thresholds and understand how they may impact your transaction.
- Use the HMRC SDLT calculator to help you plan your finances and avoid surprises.
- Consider any possible delays and factor in a bit of extra time to ensure everything is on track.
By staying informed and taking proactive steps, you can move forward with confidence and ensure your property transaction goes smoothly.
If you have any questions or need further assistance, feel free to contact us. We’re here to guide you through the process and make sure everything goes as smoothly as possible!
